Judge James Boasberg Quashes DOJ's Subpoenas to Federal Reserve in Powell Probe

Federal District Judge James Boasberg has dismissed subpoenas issued by the Justice Department to the Federal Reserve Board of Governors as part of an ongoing criminal investigation into Fed Chair Jerome Powell.

“The president has pushed for Powell's removal for months”

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The judge's 27-page ruling, unsealed on Friday, determined that the subpoenas were served for an 'improper purpose' and were essentially a pretext to pressure Powell into either lowering interest rates or resigning from his position.

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Boasberg found that the DOJ had produced 'essentially zero evidence' to support any criminal investigation of the Fed Chair, concluding that the government's justifications were 'thin and unsubstantiated' and that the investigation appeared to be driven by political pressure rather than legitimate law enforcement concerns.

The criminal investigation against Powell centered on his testimony before the Senate Banking Committee in June 2025 regarding cost overruns on the Federal Reserve's extensive building renovation project.

The subpoenas specifically sought records about recent renovations of the Fed's Washington, DC buildings and Powell's congressional testimony.

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The investigation was triggered by discrepancies between Powell's testimony about the $2.5 billion renovation project and earlier construction plans that allegedly included features like 'rooftop gardens' and 'VIP elevators' that Powell disputed were part of the current project.

This marked an unprecedented move by the Justice Department to investigate a sitting Federal Reserve Chairman.

Judge Boasberg's ruling heavily cited President Donald Trump's public attacks on Powell, noting that the investigation appeared to be motivated by the President's desire to pressure the Federal Reserve into lowering interest rates.

“Judge quashes subpoenas in Justice Department’s investigation of Fed chair Jerome Powell Judge quashes subpoenas in Justice Department’s investigation of Fed chair Jerome Powell WASHINGTON (AP) — A federal judge on Friday quashed Justice Department subpoenas issued to the Federal Reserve in January, a severe blow to an investigation that has already attracted strong criticism on Capitol Hill”

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The judge referenced a July Truth Social post where Trump blasted Powell as 'TOO ANGRY, TOO STUPID, & TOO POLITICAL,' and stated that 'That is one of at least 100 statements that the President or his deputies have made attacking the Chair of the Federal Reserve and pressuring him to lower interest rates.'

The judge observed that when direct pressure failed, the administration resorted to calling for Powell's ouster instead, suggesting a clear pattern of political interference in the Federal Reserve's independent monetary policy decisions.

In response to the judge's decision, U.S. Attorney Jeanine Pirro, who issued the subpoenas, strongly condemned the ruling and vowed to appeal it.

Pirro blasted Judge Boasberg as an 'activist judge' and claimed that his decision had 'neutered the grand jury's ability to investigate crime' and left Powell 'bathed in immunity.'

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She stated that 'This is wrong and it is without legal authority,' and emphasized that the DOJ would continue to pursue what she described as an investigation into 'an atrocious cost overrun of $1 billion' related to the Fed's renovation project.

Pirro's defiant stance indicates that the legal battle between the Trump administration and the Federal Reserve is far from over, with the DOJ planning to continue its unprecedented challenge to the central bank's independence.

The legal battle has significant political implications, particularly regarding the confirmation process for President Trump's nominee to replace Powell, Kevin Warsh.

“- Federal Judge Boasberg dismissed subpoenas against the Federal Reserve, citing "zero evidence”

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Sen. Thom Tillis (R-NC), a key member of the Senate Banking Committee, has vowed to block consideration of all Federal Reserve nominees until the criminal investigation into Powell is dropped.

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Tillis stated that the ruling confirmed 'just how weak and frivolous the criminal investigation of Chairman Powell is' and has pledged to 'blockade all Federal Reserve nominees' until the probe is ended.

This political standoff has effectively delayed the Senate's consideration of Warsh, whose nomination was announced as Powell's term ends on May 15, creating uncertainty about the leadership of the world's most important central bank during a critical period for monetary policy.